(The Center Square) – Arizona Republicans would like to see Democratic Gov. Katie Hobbs sign legislation that would limit regulations on housing construction.
Senate Bill 1112, dubbed the “Arizona Starter Home Act” aims to increase housing supply by cracking down on certain requirements mostly at the municipal level.
For example, the bill proposes that a municipality cannot require a homeowners association, a “shared feature or amenity that would require a homeowners’ association,” as well as any municipal requirements that would place minimum or maximum restrictions on lot sizes for single-family home construction.
Sen. Sonny Borrelli, R-Lake Havasu City, said regulations are driving up home prices across the state, saying that prices have soared in recent years.
“This problem becomes bigger and bigger every time local governments start restricting builders from building,” Borrelli, who is the bill’s sponsor, said at a news conference on Monday. “For example, the size of the lots. The size of the lots has to be bigger than what they normally should be.”
Senate President Warren Petersen addressed concerns about large investment companies like Blackrock, as well as short-term rental investors, potentially seeing these proposed starter homes as an opportunity for business growth.
“The protection in place is that you allow a lot of supply. The problem is the supply has been restricted, so that motivates big companies like that to come and buy everything up,” Petersen said.
“They didn’t use to do that here in Arizona,” he added, saying it’s less common for investors to buy up large quantities of homes in states with fewer regulations.
According to RedFin, the median sales price in December 2023 was $431,100, which is an increase of 5% year-over-year in Arizona. The real estate company says that Maricopa County is higher than the statewide median at $463,500.
With 30,114 for sale in December, RedFin also determined that there was a 13.1% decrease in housing supply year-over-year.